Business Strategy

Interplay’s objective is to enhance its position as a leading developer, publisher and distributor of interactive entertainment software for both core gamers and the mass market through several strategies.

Maximizing Franchise and Brand Value -- Interplay seeks to publish hit titles whose strong consumer appeal and resulting consumer loyalty will create opportunities for franchise titles, sequels and add-ons and merchandising.  Interplay anticipates additional franchise titles through products slated for release in 2003 and through developing products based on popular intellectual properties licensed to the company.

Secure Relationships with Hit Developers -- To maintain its competitive position in a hit-driven industry, Interplay devotes significant resources to securing relationships with third-party interactive entertainment software developers with proven track records of developing hit titles.  Relationships with these developers have led to the release of franchise titles including Descent, Baldur's Gate, Icewind Dale, Fallout and Redneck Rampage.

Management of Product Development Process -- To improve efficiency and predictability of product delivery, Interplay has broken down its product development and production process into divisions based on product genres.  By implementing a divisional process, Interplay seeks to improve its software design capabilities, better manage its internal and external processes and enhance its software development tools and techniques.

Leverage and Expand Distribution Channels -- To reach worldwide consumers in the retail, direct, budget and on-line markets, Interplay plans to enter new international markets and distribute its products through direct on-line marketing and sales efforts through the Internet and providers of on-line game play.  In 1997, Interplay established Interplay OEM to provide entertainment, educational and software bundles to the hardware community.

Develop and Leverage Advanced Technology -- Interplay seeks to leverage its investment in existing game technologies while internally and externally developing new technologies for future titles. Interplay develops proprietary engines, development tools and related technology, which enables it to create advanced 3D games on a timely and cost-effective basis and with a reduced technology risk.

Divisions

Black Isle Studios is the Role-Playing Game Division of Interplay dedicated to making quality role-playing games for both console and PC.  In addition to developing original titles such as Fallout and Fallout 2, Black Isle also owns the exclusive license to produce all electronic entertainment games for the Advanced Dungeons and Dragons’ The Forgotten Realms and Planescape product lines, which includes the Baldur's Gate and Icewind Dale franchises.

Interplay OEM, Inc., a wholly owned subsidiary of Interplay Entertainment Corp., bundles its software titles with hardware or peripheral devices, which are then sold by the original equipment manufacturer (OEM).  Interplay OEM serves as the exclusive OEM distributor for several of the leading interactive entertainment software publishers, including Interplay Entertainment Corp., Macplay and Titus. Interplay’s hardware customers include IBM, Compaq, Packard Bell/NEC, Creative Labs, Pioneer Electronics, Canon, Dell Computers and Logitech.